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NWS ALNG WELCOMES CHUGOKU ELECTRIC’S NEW LNG AGREEMENT

8 March, 2006

North West Shelf Australia LNG has welcomed the signing of a new long-term agreement between Japan power generation utility Chugoku Electric Power Co., Inc and Australia's largest resources project, the North West Shelf Venture, for the supply of liquefied natural gas.

Chugoku Electric is the first of the North West Shelf Venture's original eight Japanese LNG customers to re-sign with the joint venturers.

"Today's new LNG supply agreement between the North West Shelf Venture and Chugoku Electric, one of its original Japanese customers, further confirms the North West Shelf Venture's international reputation as a safe, secure and reliable supplier of LNG," said the President of NWS Australia LNG, Peter Cleary.

"Chugoku Electric's desire to retain its long-term business relationship and friendship with the NWS Venture was heavily influenced by the impressive production and delivery performance of the Venture over the past 16 years.

"The continued performance of the NWS Venture has created growing worldwide interest in longterm supplies of LNG from the Venture, particularly in the North-Asia region."

Under a 12-year contract starting in April 2009, the NWS Venture will supply between 1.2 and 1.4 million tonnes of LNG or about 22 LNG cargoes a year to Chugoku Electric.

The original 1985 sales and purchase agreement for the supply of 1.11 million tonnes of LNG each year to Chugoku, which is the primary energy supplier in the province of western Honshu with more than 5.2 million customers, expires in April 2009.

Mr Cleary said NWS Australia LNG, which markets LNG on behalf of the North West Shelf Venture, remained focused on maintaining and extending its important contractual relationships with long-term Japanese customers for future supply of Australian LNG as well as successfully marketing available LNG volumes from the NWS Venture to other North Asian customers.

"The NWS Venture has received significant and firm interest from existing and potential North-Asian customers for future LNG supply," he said.

"We remain confident that available LNG volumes from the NWS Venture will be successfully marketed as regional and global LNG markets continue to expand."

The six equal participants in the North West Shelf Venture are: BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; Chevron Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; Shell Development (Australia) Proprietary Limited; and Woodside Energy Ltd (Operator).

CNOOC NWS Private Limited is also a member of the North West Shelf Venture but does not have an interest in North West Shelf Venture infrastructure.

 

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